FINRA Series 31 - Quiz 11 - Pauline.new
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Question 1 of 10
1. Question
Which of the following under the records that needs to be preserved by the brokers and dealers shows that an individual must ensure that a firm has all partnership articles, articles of incorporation or charter, minute books, stock certificate books, and other forms?
Correct
Under the records that must be preserved by the brokers and dealers, this includes the organizational documents. Organization documents ensure that the firm has kept all partnership articles and if the case is in a corporation, all the articles of incorporation, minute books, and books of stock certificate. They also have the forms BD and BDW, and all licenses and other documentation that shows such registration that has any securities regulatory authority.
Incorrect
Under the records that must be preserved by the brokers and dealers, this includes the organizational documents. Organization documents ensure that the firm has kept all partnership articles and if the case is in a corporation, all the articles of incorporation, minute books, and books of stock certificate. They also have the forms BD and BDW, and all licenses and other documentation that shows such registration that has any securities regulatory authority.
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Question 2 of 10
2. Question
Which of the following under the records that needs to be preserved by the brokers and dealers ensures that the firm has each report which a securities regulatory authority has requested?
Correct
Under the records that need to be preserved by the brokers and dealers are the special reports. Special reports show and ensure that the firm has a report which the securities regulatory authority has required or sent a request to a broker or dealer to make and provide that is regarding a specific order or settlement and this also includes each examination report of the securities regulatory authority.
Incorrect
Under the records that need to be preserved by the brokers and dealers are the special reports. Special reports show and ensure that the firm has a report which the securities regulatory authority has required or sent a request to a broker or dealer to make and provide that is regarding a specific order or settlement and this also includes each examination report of the securities regulatory authority.
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Question 3 of 10
3. Question
Which of the following under the records needs to be preserved by the brokers and dealers that a firm must have this manual that describes the policies and practices of the broker or dealer with respect to such laws and rules?
Correct
There are records that need to be preserved by the brokers and dealers, one of which is a manual regarding the compliance, supervisory, and procedures. This manual ensures that the firm will strictly have the compliance, supervisory, and procedures that includes the updates, alterations, and changes in the manual. It is stated in the manual the policies and practices of the brokers and dealers in line with the said rules and law and supervising also the activities of such associated persons.
Incorrect
There are records that need to be preserved by the brokers and dealers, one of which is a manual regarding the compliance, supervisory, and procedures. This manual ensures that the firm will strictly have the compliance, supervisory, and procedures that includes the updates, alterations, and changes in the manual. It is stated in the manual the policies and practices of the brokers and dealers in line with the said rules and law and supervising also the activities of such associated persons.
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Question 4 of 10
4. Question
How many years shall the members preserve the FINRA books and records?
Correct
Under the books and records, there are general requirements that an individual must know. In the rule of the general requirements, there are tasks that a member must do with regards to the books and records. One of the requirements is that the member shall maintain and preserve for a period of at least 6 years the books and records of FINRA for there is no specific period given under the FINRA rules or in the rule of the Exchange Act.
Incorrect
Under the books and records, there are general requirements that an individual must know. In the rule of the general requirements, there are tasks that a member must do with regards to the books and records. One of the requirements is that the member shall maintain and preserve for a period of at least 6 years the books and records of FINRA for there is no specific period given under the FINRA rules or in the rule of the Exchange Act.
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Question 5 of 10
5. Question
Which of the following means any grievance by a customer or any person authorized to act on behalf of the customer involving the activities of the member?
Correct
Under the rule regarding the records of written complaints of the customers, customer complaint is identified as any grievance by a customer or an authorized person that will act on behalf of a customer that is involved in the activities of the member regarding the solicitation or implementation of any transaction of the customer. It is also stated that the member shall preserve and keep separate files of all written complaints of customers that are related to that specific office. The said customer complaint records shall be preserved and kept for a period of at least four (4) years.
Incorrect
Under the rule regarding the records of written complaints of the customers, customer complaint is identified as any grievance by a customer or an authorized person that will act on behalf of a customer that is involved in the activities of the member regarding the solicitation or implementation of any transaction of the customer. It is also stated that the member shall preserve and keep separate files of all written complaints of customers that are related to that specific office. The said customer complaint records shall be preserved and kept for a period of at least four (4) years.
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Question 6 of 10
6. Question
Which of the following may be the formats in storing books and records?
I. They may store such books and records in paper form
II. They can store books and records in a library
III. It can be in an electronic storage media
IV. They can store such books and records on micrographic mediaCorrect
In such books and records, there are formats or mediums on how to keep such records. In storing such books and records, firms may use formats or media such as they can store it in a form of paper. Firms may also store it on a micrographic media such as microfilm, microfiche, or any medium that are alike to such medium. Lastly, they can store such books and records on an electronic storage media. The electronic storage media and micrographic media are subject to conditions that are stated in the SEA Rule 17a-4(f).
Incorrect
In such books and records, there are formats or mediums on how to keep such records. In storing such books and records, firms may use formats or media such as they can store it in a form of paper. Firms may also store it on a micrographic media such as microfilm, microfiche, or any medium that are alike to such medium. Lastly, they can store such books and records on an electronic storage media. The electronic storage media and micrographic media are subject to conditions that are stated in the SEA Rule 17a-4(f).
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Question 7 of 10
7. Question
Which of the following are the conditions that must be met in the Electronic Storage Media?
I. Firm Notification are one of the conditions
II. One of the conditions is the Retrieval Facilities
III. Access to Records and Indexes must also be met in the ESM
IV. Price Limits is one of the conditions that must be metCorrect
Under the Records and Books, there is an Electronics Storage Media. Under the Electronics Storage Media, there are conditions that must be met. The following conditions includes the firm notification, the representation of the Electronics Storage Media, the Audit System, such access to the records and indexes, representation of the third-party access, the retrieval facilities, enlargement of facsimile, duplicate copies of the records, and lastly, the indexes.
Incorrect
Under the Records and Books, there is an Electronics Storage Media. Under the Electronics Storage Media, there are conditions that must be met. The following conditions includes the firm notification, the representation of the Electronics Storage Media, the Audit System, such access to the records and indexes, representation of the third-party access, the retrieval facilities, enlargement of facsimile, duplicate copies of the records, and lastly, the indexes.
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Question 8 of 10
8. Question
Which of the following is true about the conditions of the representation of Electronics Storage Media?
I. Serializes the original and, if applicable, duplicate units of the storage media and time-dates for the required retention period the information stored on it
II. Verifies automatically the quality and accuracy of the storage media recording process
III. Does not preserve the records exclusively in a non-rewritable, non-erasable format
IV. Does not have the capacity to readily download stored records and indexes to any mediumCorrect
Under the Electronics Storage Media, there is a condition regarding the ESM Representation. Under the ESM Representation there are also conditions that must be met regarding that a broker-dealer must provide to its DEA, such conditions include – they must provide the records in a format that is non-erasable or non-rewritable, they should also serialize the original and duplicate such units, they should verify the quality and accuracy of the recording process automatically, and lastly, they should also have the capacity to have downloaded stored records and indexes readily.
Incorrect
Under the Electronics Storage Media, there is a condition regarding the ESM Representation. Under the ESM Representation there are also conditions that must be met regarding that a broker-dealer must provide to its DEA, such conditions include – they must provide the records in a format that is non-erasable or non-rewritable, they should also serialize the original and duplicate such units, they should verify the quality and accuracy of the recording process automatically, and lastly, they should also have the capacity to have downloaded stored records and indexes readily.
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Question 9 of 10
9. Question
Which of the following is true regarding the outsourcing of such records and books?
I. They have the choice to have in place specific policies and procedures to monitor the recordkeeping service’s compliance with the terms of any agreements
II. Firms should also ensure that their policies and procedures provide for the due diligence analysis
III. A broker-dealer may use a recordkeeping service to maintain the broker-dealer’s required records
IV. Firms have a continuing responsibility to oversee, supervise and monitor the recordkeeping service’s performance of covered activitiesCorrect
Stated in the outsourcing of books and records that the broker-dealers may use a service in recordkeeping to preserve the required records of the broker-dealers. Firms shall have the responsibility to oversee, supervise, and as well monitor the said service. They should also have policies and procedures when it comes to monitoring of such records. Firms shall also ensure the policies and procedures provided are for due diligence analysis of the said service.
Incorrect
Stated in the outsourcing of books and records that the broker-dealers may use a service in recordkeeping to preserve the required records of the broker-dealers. Firms shall have the responsibility to oversee, supervise, and as well monitor the said service. They should also have policies and procedures when it comes to monitoring of such records. Firms shall also ensure the policies and procedures provided are for due diligence analysis of the said service.
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Question 10 of 10
10. Question
Which of the following is true about the Books and Records Rules Pertaining to Electronic Communications?
I.This requirement covers only external electronic communications relating to the firm’s business
II.This requirement covers only internal electronic communications relating to the firm’s business
III. Email between registered representatives in the same firm is one example of an internal electronic communication
IV.The requirement equally applies whether the electronic communication was received or sent through a member’s or a third-party’s platform or systemCorrect
Stated in the books and records rules pertaining to electronic communications, this rule requires that the broker-dealer shall preserve and maintain the original copies of all the communications received that they sent. Such requirement is applied to all electronic communications that are related to the business firm, emails and instant messages are included. The requirement shows both external and internal electronic communications. An example of internal electronic communication is the email between the representatives in the same firm. Lastly, the use of any type of electronic communication may not be permitted by the firm if they are incapable to satisfy the required requirements in recordkeeping with the specific type of electronic communication.
Incorrect
Stated in the books and records rules pertaining to electronic communications, this rule requires that the broker-dealer shall preserve and maintain the original copies of all the communications received that they sent. Such requirement is applied to all electronic communications that are related to the business firm, emails and instant messages are included. The requirement shows both external and internal electronic communications. An example of internal electronic communication is the email between the representatives in the same firm. Lastly, the use of any type of electronic communication may not be permitted by the firm if they are incapable to satisfy the required requirements in recordkeeping with the specific type of electronic communication.